Problem 23-2A (Part Level Submission) Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.40 $2.25 Raw materials units used 11,500 10,600 Direct labor payroll $177,600 $171,760 Direct labor hours worked 14,800 15,200 Manufacturing overhead incurred $202,000 Manufacturing overhead applied $205,200 Machine hours expected to be used at normal capacity 41,500 Budgeted fixed overhead for June $62,250 Variable overhead rate per machine hour $3.00 Fixed overhead rate per machine hour $1.50 Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour. The jobs were sold for $495,000. Selling and administrative expenses were $39,300. Assume that the amount of raw materials purchased equaled the amount used.

repare an income statement for management. (Ignore income taxes.)